Based on RBI Covid-19 relief measure about providing 3 months loan EMI deferment, many banks are coming forward to provide relief up to 3 months loan EMIs. The majority of the public sector banks have already come forward on this. Now HDFC Bank has issued guidelines about this 3 months loan EMI deferment. In this article we would provide the process on how to avail HDFC Bank Moratorium to defer your loan EMI by 3 months and credit card outstanding and who is eligible for that.

What is 3 months Loan EMI moratorium?

Considering covid-19 / corona virus situation, the RBI has taken several steps to benefit Indian citizens. One of the measures was to provide relief for Loan EMI deferment for 3 months. This means that one need not pay EMI’s for 3 month period. While there are several flaws in this relief package, considering the T&C provided by banks, one can proceed and get such benefit.

Who is eligible for HDFC Bank Moratorium of 3 months loan EMI deferment?

Here are the eligibility criteria for HDFC Bank customers.

1) All HDFC Bank customers who have availed of retail loan or any other retail credit facilities prior to 1st March 2020 are eligible.

2) Customers having over dues prior to 1st March 2020 may also opt for the moratorium, and their requests shall be considered by the bank based on its merits.

3) All Agri Loans (Kisan Gold Card) and Microfinance customers under the Bank’s Sustainable Livelihood Initiative are also eligible.

4) All Corporate as well as SME customers are also eligible. Relationship Managers will get in touch with you or you can contact them to get further details.

What would happen once you avail this HDFC Bank 3 months loan EMI Moratorium?

Here is what would happen if you avail this facility.

1) HDFC Bank will not ask for any EMI Payment from 1st March to May 31st 2020 – 3 month period.

2) Interest will continue to accrue on the principal loan outstanding amount for the period of the moratorium at the contracted interest rate.

3) The loan tenure will get extended by the corresponding period for which the moratorium has been availed. For example, if the EMI for the month of Mar’2020 has been paid and moratorium for April & May’2020 has been availed, then the loan tenure will be extended by 2 months.

What are the various charges applicable if I avail HDFC Bank moratorium?

If you avail the HDFC Bank EMI moratorium, there will charge interest at the contracted interest rate of the loan for the 3 month period of EMI moratorium on the principal loan outstanding. Such interest will be collected by extending the original tenor of the loan accordingly. E.g. if the loan tenure was 60 months and you paid for 5 months and balance is 55 months. If you have opted for 3 month loan deferment, then the tenor would be extended from 55 to 58 months.

How to avail 3 Months Loan EMI moratorium from HDFC Bank?

Here is the process on how you can avail Loan EMI moratorium from HDFC Bank.

If you have multiple loan accounts in HDFC Bank, can you avail this facility?

Yes, you can avail this facility for multiple loan accounts.

If I already paid by EMI dues in Mar-2020, can I get refund of loan EMI?

If you have already paid Mar EMI dues, you can avail for balance 2 months for relief.

How to avail this relief for HDFC Credit Card outstanding amounts?

Yes. HDFC Bank confirmed they are providing the relief even to credit card outstanding amounts.

1) Credit card payment delays won’t be reported to credit bureaus.

2) The credit card interest would be levied as usual, which is generally very high. Customers need to check this aspect before availing this.

3) You don’t need to follow any specific instructions to defer the credit card payments. You just need to stop paying this till 31st May, 2020 and pay from 1st June, 2020 onwards. Visit HDFC Bank website for more details.

Does it cost more if I avail this HDFC Bank loan deferment for 3 months?

If you are availing this relief, you might get doubt whether it would really cost you high or nominal. Let us quickly check some samples. However, this would vary depending on loan amount, interest and balance tenure.

Sample example of Car Loan: Loan amount Rs 8 Lacs, balance tenor 36 months, Last EMI on 7-Feb-2023, opting for 3 months Moratorium i.e. Mar, Apr and May. The additional interest would be about Rs 25,500, and the resultant tenor would increase by 4 months, and the last EMI including the interest recovery would be on 7-Jun-2023.

Personal Loan by Salaried Employee: Loan amount Rs. 4 Lacs, remaining tenor 48 months, Last EMI paid 4-Mar-2024, opting for 2 months Moratorium i.e. Apr-20, May 20 EMIs. The additional interest would be about Rs 15,000, and the resultant tenor would increase by 1.4 EMI, and the last instalment (40% of regular EMI) would be on 4-Jul-2024.

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